15. Income Taxes

Income taxes relating to income from continuing operations consisted of the following:

	Year Ended December 31,
	2012			2011		2010
Current:
Federal	$	(17,038	)	$	15,905	$	5,932
State and local	1,181			3,657		2,295
Foreign	26,890			4,941		27,500
Total current	11,033			24,503		35,727
Deferred:
Federal	70,082			34,237		21,355
State and local	11,835			863		5,455
Foreign	1,380			12,087		904
Total deferred	83,297			47,187		27,714
Income taxes relating to continuing operations	$	94,330		$	71,690	$	63,441

Income taxes relating to income from continuing operations varied from the U.S. federal statutory income tax rate due to the following:

	Year Ended December 31,
	2012			2011			2010
Income taxes relating to continuing operations at federal statutory rate of 35%	$	101,146		$	86,750		$	64,973
State and local income taxes, net of federal taxes	7,071			1,891			5,200
Foreign	(11,775		)	(967		)	(5,864		)
Uncertain tax positions	(1,366		)	(16,061		)	—
Other	(746		)	77			(868		)
Income taxes relating to continuing operations	$	94,330		$	71,690		$	63,441

In 2011 a settlement was reached with the U.K. tax authorities in relation to tax enquiries for the years 2004 to 2009 in relation to one of the U.K. companies, which represented approximately $16,000 of the net uncertain tax position provision adjustment.

The components of deferred tax assets and liabilities at December 31, 2012 and 2011 were as follows:

	2012			2011
Deferred Tax Assets
Accrued liabilities	$	51,221		$	53,224
Net operating loss carryforwards	14,053			12,376
Interest rate swap	5,670			6,004
Other	3,526			9,044
Total deferred tax assets	74,470			80,648
Valuation allowance	(14,621		)	(11,839		)
Net deferred tax assets	59,849			68,809
Deferred Tax Liabilities
Depreciation and amortization	(136,522		)	(119,988		)
Partnership investments	(178,580		)	(111,400		)
Convertible notes	(12,472		)	(21,335		)
Other	(573		)	(1,118		)
Total deferred tax liabilities	(328,147		)	(253,841		)
Net deferred tax liabilities	$	(268,298	)	$	(185,032	)

At December 31, 2012, we completed a comprehensive review of our deferred income tax balances and determined that certain deferred tax assets and liabilities required correction. We were able to determine that the required corrections relate to periods prior to January 1, 2008. Management has concluded that the effect of the correction is not material to our consolidated balance sheet, results of operations, or cash flows for any period presented. As a result, we have increased the opening retained earnings balance by $7,616 and increased accumulated other comprehensive loss by $1,565 as of January 1, 2008 in the accompanying consolidated financial statements.

We do not provide for U.S. taxes relating to undistributed earnings or losses of our foreign subsidiaries. Income from continuing operations before income taxes of foreign subsidiaries (which subsidiaries are predominately in the U.K.) was $117,002, $98,380, and $96,976 during 2012, 2011, and 2010, respectively. It is our belief that such earnings will be indefinitely reinvested in the companies that produced them. At December 31, 2012, we have not provided U.S. federal income taxes on a total of $817,358 of earnings of individual foreign subsidiaries. If these earnings were remitted as dividends, we would be subject to U.S. income taxes in excess of foreign taxes paid and certain foreign withholding taxes.

At December 31, 2012, we have $200,672 of state net operating loss carryforwards in the U.S. that expire at various dates beginning in 2013 through 2030, state credit carryforwards of $1,799 that will not expire, U.K. capital loss carryforwards of $4,996 that will not expire, and German net operating loss carryforwards of $8,207 that will not expire. We utilized $3,866 of state net operating loss carryforwards in the U.S in 2012.

A valuation allowance of $3,610 has been recorded against the state net operating loss carryforwards in the U.S. and a valuation allowance of $235 has been recorded against the state credit carryforwards in the U.S. A valuation allowance of $2,544 has been recorded as of December 31, 2012 against German net operating losses and a valuation allowance of $385 has been recorded against other German deferred tax assets. A valuation allowance of $7,847 has been recorded as of December 31, 2012 against U.K. deferred tax assets related to buildings.

Generally accepted accounting principles relating to uncertain income tax positions prescribe a minimum recognition threshold a tax position is required to meet before being recognized, and provides guidance on the derecognition, measurement, classification, and disclosure relating to income taxes. The movement in uncertain tax positions for the years ended December 31, 2012, 2011, and 2010 were as follows:

	2012			2011			2010
Uncertain tax positions — January 1	$	14,858		$	36,097		$	36,887
Gross increase — tax position in prior periods	1,287			679			1,493
Gross decrease — tax position in prior periods	(761		)	(19,077		)	(288		)
Gross increase — current period tax position	18			17			—
Settlements	(891		)	(2,201		)	(125		)
Lapse in statute of limitations	(287		)	(541		)	(756		)
Foreign exchange	458			(116		)	(1,114		)
Uncertain tax positions — December 31	$	14,682		$	14,858		$	36,097

We have elected to include interest and penalties in our income tax expense. The total interest and penalties included within uncertain tax positions at December 31, 2012 was $3,151. We do not expect a significant change to the amount of uncertain tax positions within the next twelve months. Our U.S. federal returns remain open to examination for 2010 and 2011 and various foreign and U.S. states jurisdictions are open for periods ranging from 2002 through 2011. The portion of the total amount of uncertain tax positions as of December 31, 2012 that would, if recognized, impact the effective tax rate was $14,335.

We have classified our tax reserves as a long term obligation on the basis that management does not expect to make payments relating to those reserves within the next twelve months.